MBABANE – The Public Accounts Committee (PAC) has raised serious concerns over the growing practice of board members receiving salaries instead of sitting allowances.
The PAC warned that the development could be unconstitutional and is contributing to government over expenditure.
This emerged during a PAC sitting where the Ministry of Home Affairs appeared before the committee to respond to queries contained in the Auditor General’s report. The committee is chaired by Mhlangatane MP Madala Mhlanga, while the ministry was represented by its controlling officer Principal Secretary Nhlanhla Nxumalo.
Explaining the over expenditure incurred by the Ministry of Home Affairs, Nxumalo told the committee that government ministries had contributed approximately E26 million during the 2020/2021 financial period towards the fight against COVID-19. He said the funds were channelled from various ministries to support pandemic-related interventions.
He further explained that expenditure pressures within the ministry had also been worsened by the operational changes involving the Citizenship Board.
Nxumalo said the board members were previously paid sitting allowances, but later transitioned to receiving salaries following the issuance of a government circular.
“There is a circular that was issued stating that the Citizenship Board members were going to be salaried, and we implemented that because it was a circular,” said Nxumalo.
He admitted that the move had contributed to over expenditure within the ministry’s budget, particularly under salaries.
“We have engaged the Ministry of Finance regarding the over expenditure caused by the board receiving salaries instead of sitting allowances. We always address this issue during the budget discussions,” he said.
Nxumalo further explained that the challenge was that the salary budget allocation remained unchanged despite the additional burden created by the salaried board members.
“The problem is that the budget for salaries remains the same. Maybe we need to apply more vigour in ensuring that this issue is addressed,” he added.
PAC Chairperson Madala Mhlanga questioned whether the practice was consistent with the Constitution, saying their understanding was that board members were only entitled to sitting allowances.
“The Constitution is clear that board members get sitting allowances,” said Mhlanga.
He said the committee had observed similar arrangements in other entities, including the Minerals Board and the Land Management Board, where members were allegedly also receiving salaries.
Mhlanga said while the committee understood that a circular had been issued, government needed clarity on how the matter would be harmonised to avoid continued over expenditure.
“If it is constitutional that board members in this country are supposed to be salaried, then it must not be selective. All boards should be paid and those salaries must come from the budget,” he said.
He further stated that if there was uncertainty regarding the legality of the arrangement, then the Ministry of Justice needed to provide a clear interpretation.
“It was stated that if there is an issue, then the courts must interpret it. But when we read the Constitution, board members should be on allowances and not salaries,” said Mhlanga.
The PAC called for all boards currently receiving salaries to be scrutinised, saying this was now the third board identified by the committee.
According to the PAC such was a violation of the constitution.
The committee also raised concern that the arrangement created the possibility of individuals earning two salaries simultaneously, one from their primary employment and another from serving on government boards. Mhlanga maintained that the Ministry of Finance, as the issuer of government circulars, needed to account for the policy direction that had resulted in the contentious payments.
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